Required rate of return on lap beta


Problem:

BCO stock has a beta of 1.30, and its required return is 12.00%. LAP Stock's beta is 0.80.

Required:

Question: If the risk-free rate is 4.75%, what is the required rate of return on LAP Beta's stock?

Note: Please provide equation and explain comprehensively and give step by step solution.

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Accounting Basics: Required rate of return on lap beta
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